Freddie Mac: Mortgage rates hold steady on weekly basis
Posted on Friday, December 13, 2013 at 9:52:47 AM
Last week's strong economic reports have done little to alter residential financing rates recently, according to Freddie Mac's Primary Mortgage Market Survey.
Freddie Mac explained that current economic data hasn't been as strong, which has led to mortgage rates holding steady. The current 30-year fixed-rate mortgage averaged 4.42 percent for the week ending Dec. 12, compared to last week's 4.46 percent.
The 15-year FRM averaged 3.43 percent, slightly below last week's 3.47 percent.
Frank Nothaft, vice president and chief economist for Freddie Mac, said that rates didn't really change because of the past week of light economic data releases.
However, current residential financing rates are still historically low. In fact, homebuyers have had it so good recently that many believe current figures are considered normal, according to Redfin.
A survey by the organization found that 53 percent of homebuyers questioned believe that rates between 4 percent and 5 percent are normal. However, numbers only got that low in 2009, while the traditional average is closer to 7 percent.
Redfin's survey results highlighted how drastic the shift has been over the past several years. Extremely affordable rates have conditioned homebuyers to expect this, even though slightly higher numbers are still within the realm of normalcy.